Nokia Is in Deep Trouble: 10 Reasons Why

News Analysis: Nokia is struggling to stay relevant in the mobile market, but it's clear it's not succeeding. Nokia is in deep trouble and it might not overcome its problems even with Microsoft as a technology partner.

In
the mobile market, much of the focus is placed on Apple and Google, two
companies that have proved over the last few years that with the right idea and
powerful software, companies can enter a market with entrenched competitors and
still reign supreme. Now, the iPhone and Android-based devices are capturing
the attention (and cash) of consumers around the globe.
But
amid all that success, there is one company that's struggling to maintain its
once lofty market position. Nokia used to hold the top spot in the mobile
market and was easily dominating the space. But over the last few years, the
company has lost its way as more-capable alternatives continue to hammer its
market position. Now, Nokia is turning to Windows Phone 7 and its upcoming N9
smartphone to help turn that tide. But no matter what the company does, it
won't help.

1. No one wants Symbian
For
years, Symbian was the dominant operating system in the mobile market. But its
market share has shrunk even though it's still hanging on in some parts of the
world. Symbian can't compete any longer with Google's Android platform and
Apple's iOS, which are the operating systems that have grabbed customers'
attention. Symbian was a sound, reliable mobile phone operating system, but it
was bypassed by more sophisticated competitors. Now Nokia finds itself in a
difficult position with an aging operating system and no viable successor
technology of its own.
2. Windows Phone 7 isn't catching on

Nokia
earlier this year tried to change its luck by announcing that Windows Phone
would become the "principal" operating system in its smartphones going forward.
When those devices launch, however, they will need to overcome Windows Phone
7's lack of appeal in the mobile market. Microsoft's OS was too late to the
game, and due to updating issues and design quirks, consumers haven't jumped at
the chance to use Windows Phone 7. Chances are Nokia won't be able to
change that situation.
3. Consumers have gone elsewhere
Nokia
phones were once a consumer favorite, but no longer. Other devices, including
the Apple iPhone and Samsung Galaxy S smartphone, among many others, have
captured consumers' imagination. Consumers stuck around in support of Nokia for
a while, but after they realized that the company wasn't reacting very
adroitly, they left, and they might not come back.
4. Trust is gone
Following
that, it's important to note that consumers around the world have lost trust in
Nokia. There was a time when they could count on the company to deliver the
latest and greatest platform on the market. But over the last several years, it
has been slow to react, and when it did offer products, they failed to appeal
to the new customer. Now,
consumers don't know if they can trust Nokia's claims that it will change
all that in the coming years. That alone will be a difficult issue for Nokia to
overcome.

Don Reisinger is a freelance technology columnist. He started writing about technology for Ziff-Davis' Gearlog.com. Since then, he has written extremely popular columns for CNET.com, Computerworld, InformationWeek, and others. He has appeared numerous times on national television to share his expertise with viewers. You can follow his every move at http://twitter.com/donreisinger.